Gold Coast Real Estate, All Chapters Quizzes, Gold Coast Real Estate School Exam Combo Study Guide Rated A+ 2024

Tract building - When a dev. Acquired land, records a plat map and uses a model centre from which sales may be made Local level - Planning, zoning, property taxation, building and health codes and regulations, and building moratoriums that affect development play a significant role in the cost and desirability of real estate Broker associate - A licensed broker working for another broker False - A Florida real estate license applicant must be a resident and citizen (true or false) Application Denial - You have 21 days to send a formal letter to the department for a hearing if: One - How mang brokers can a sales or broker associate work for Post license requirements - No grace period Sales associate first renewal - No grace period Exempt from licensure - Attorney in fact/ Attorney at Law Attorneys at law - My perform legal services on behalf ofntheir clients; they may prepare documents, handle closings, and give legal advice. Involuntary inactive - An individual who does not request renewal of their second or subsequent lecense, pay the required fees, or maintain their continuing education requirements will have their license placed in 2 years - A license may remain in involuntary inactive status for no longer than [rpt Special Agent - A special agent is authorized under agency law by the employer to perform a single act. The employment contract between the employer and agent establishes the limit of authority granted Gold Coast Real Estate, All Chapters Quizzes, Gold Coast Real Estate School Exam Combo Study Guide Rated A+ 2024 Presenting offers - A broker has a buty to transmit any and all offers to the employer including oral offers or offers made without a binder deposit Limited - A transaction broker provides what kind of representation Single agent - this agency relationship is created when a broker accepts employment under a single agency agreement. A broker may represent a seller or buyer , or a landlord or tenant. Principal - In a single agency relationship, the employer becomes the For sale By owner - Non Representation or (No Brokerage Relationship can also be called) FSBO - For sale by owner can also be called Stationary Construction - An active broker is required to have this open which must be registered with the department of Business and Professional Regulation where Negotiations and the closing of real estate transactions can be conducted with privacy Others - Licencees should make clear that they are dealing on their own account and not acting on the behalf of Public - Licencees should make known their status as licencees to members of the Serious negotiations - This Disclosure should be made prior to entering into Deposit - A form of Money, personal property, real property, or anything of value that is capable of being converted into cash. Closing - Typically the deposit is intended as partial payment of the purchase price at? Post dated checks - Are considered to be promissory notes and can be accepted as earnest money with the seller's approval. True - When a deposit is placed, or is to be placed, with a title company or an attorney, the licensee who prepared or presented the sales contract must indicate on that contract the name, address, and telephone number of the title company or attorney with whom the deposit was placed (True or False) Escrow or trust account - May be held in a commercial bank, title company which has trust powers, credit union, or savings and loan association located in the state of Florida cannot - The escrow account be held in a stock or bond brokerage house Commingle - A broker is not allowed to or deposit the personal funds of any person with any funds being held in escrow, trust or on condition Next business day - A sales associate or broker associate who receives an earnest money deposit on behalf of his or her employer must deliver the deposit to the True - A broker must immediately place the earnest money deposit in a escrow or trust account. (True or False) [ezy Immadiately - Defined as "No later than the end of the third business day following receipt" escrow dispute - Conflicting requests in which both the buyer and the seller demand that the broker release escrowed funds is called an written notification - If a broker receives conflicting demansafor escrowed funds, or if the broker has good-faith doubt as to which person is entitled to the escrow property, the broker must give to the commission 15 days - Notification to the commission must be made within from the date of the last party's demand. 10 days - A sales associate must report any change of employer or change of address within of the change to the Department on a form prescribed for such use. 60 days - Any resident licensee who becomes a nonresident must notify the Commission of the change in residency within False - A non- US Citizen can be denied (True or False) employer no later than the following the receipt Real estate brokerage partnership - Must have at least one partner licensed as an active broker Brokers license - Each partner who provides real estate services to the public either ditectly or indirectly must hold an active Joint venture - a temporary business that involves a single transaction or a predetermined number of transactions. temporary - The participants of a joint venture cannot bind one another to any new transactions because their relationship is Corporation for profit - Must include the word "Corporation, Company, incorporated, or the abbreviation "Corp" "Inc." or "Co." Company - No business is allowed to use the word unless it is formed legally as a corporation for profit or unless the words are "not Inc." Second degree misdemeanor - Dissementing false or misleading advertising is a 500 60 - A second degree misdemeanor is punishable by a criminal fine of up to dollars and imprisonment of up to days Concealment - occurs when a broker fails to disclose information to a party, to whom the borker has such a duty, and that is material to his or her decision. Culpable negligence - Occurs if a broker operaties in a reckless, careless, and excessively negligent manner. Administrative - may be imposed by the Commission for violations of law or rules in amounts of up to 5,000 per offense Legally sufficient - A complaint analyst reviews the complaint form or letter that describes the alleged violation to determine if the complaint is cannot - A licensee review a lease for a fee Steering or channeling - an individual, directly or indirectly, into or away from a neighborhood or location in a multiunit building on the basis od race, color, religion, sex, or national origin. Redlining - The refusal of a lender to approve a mortgage loan based on a property being located in a certain geographical area, the age of the property, the income level of the residents, or the racial composition. americans with disabilities - Act was passed in 1990 with the purpose of providing the same employment oppurtunities to qualified individuals with disabilities. Economically feasible - For existing properties that do not comply with the ADA, the owners are required to make necessary modifications whenever such changes are readily acheivable and Surety bond - Posted with the clerk of the circuit court in the county in which the dwelling unit is loacted in the amount of the total security holdings or $50,000 whichever is less True - The security advance rents may be commingled with other funds of the landlord once surety bond is posted, the landlord must pay the tenant 5% simple interest anually on money held in this manner ( True or False) Accretion - an increase in land area as moving water deposits soil in other than its original location. This is the opposite of erosion. five - how many sticks are in the bundle of rights? Bundle of rights - possession, disposition, enjoyment, exclusion, control are examples of what? Tenancy in common - is a fee estate held ny two or more persons. Each person has undivided interest in the whole property. Tenancy in common - Can be created by the same or difeerent deeds, at the same or different times, with equal or unequal shares of ownership. Tenancy by entireties - An estate for husband and wife only. Survivorship - The marriage in a tenancy by entireties is considered to be the ownerof the property in which each spouse has a right of Life estate - is a freehold estate created when an owner of a fee simple estate conveys ownership to another, but only for the balance of the lifetime of the party to whom the property is conveyed. Non marital asset - A separate property in a life estate is a divided equitably - Marital assets are Grantor - The party that created the life estate is the reversion estate - The right to regain ownership of a life estate is called remainder estate - if someone other than the owner is to receive the ownership of a life estate it is called a Tenancy at will - A non freehold with the tenant in lawful possession of the property under an grement with the landlord, but with no definite time limit for the rights to terminate. Tenancy for years - non freehold estate with lawful possession of the property under an agreementwith the landlord for a specified period of time. Elective share - Provides for a surviving spouse to be entitles 30% of thr decendant's real and personal property owned at the time of death Constructive notice - is acheived by recording documents in the public records. Recording a document has the same legal effect as showing it to the entire world. Granting clause - is the only legally necessary clause required in a deed Habendum clause - specifies the legal rights being conveyed. The portion of the bundle of rights being conveyed is described in this clause. Quitclaim deed - states that any interest they may have in the property is relinquieshed to the grantee. The grantor does not promise to have any rights in the property, but rather, any rights he or she may have are being conveyed. Eminent domain - Allows local, state, or Federal government, railroads, public utilities, and public housing authorities to obtain ownership to private property. Gross lease - a lease in which the tenant agrees to pay a fixed rental amountm and the landlord pays all expenses related to the property such as real estate taxes, insurance, and maintanance costs. Metes and bounds - also known as the surveyors method, the oldest method of land description. Township - A township is six miles square and contains 36 sq miles Plat method - known as the lot and block, is a method of legal description used to identify small parcels of property subdivided areas and cities. Consideration - A promise of future money is an example of a Contract - created when the offer of one party is accepted, an acceptance of the offer indicated that a complete meeting of the minds exists. statute of frauds - enacted in England in 1677 to provide protection against fraud in the sale of real property. It requires a contract for the transfer of a right or interest in land to be in writing in order to be enforcable? Statute of limitations - provides time limits in which parties are allowed to bring legal action to enforce their rights under a contract. Implied contract - Exists when some or all of the terms and conditions can be assumed by the nature of the agreements or the words and actions of the parties Void contract - A contract that is inherently unenforcable. Liquidated damages - Is a type of damage with those that are specified and agreed upon in the contract. (Asks for deposit) Unliquidated damages - Type of damage that is not specified in the contract, but are agreed upon by a court. (Compensatory Damages) Option contracts - Property "layaway" lien theory - allows a mortgagor(borrower) to retain the title(ownership)during the loan period promissory note - When money is borrowed to purchase real estate. the lender requires this. Satisfaction of mortgage - when a loan has been paid in full in a lien theory state Defeasance clause - Provides protection for the borrower as it requires the lender to acknowledge performance by the borrower Escalation clause - allows a lender to increase the interest rate based in the occurance of an event Mortgage underwriting - to assess the risk of default or collection problems, lenders evaluate both the applicant and the property before approving a loan Credit history - The underwriter obtains a report from a credit-reporting agency and reveiws the applicants contract for deed - a form of land owner financing Default - failiure to perform as agreed in the promissory note Equity of redemption - the right of a borrower to cure the default before forclosure rather than lose the property. Honorably discharged - In order for a VA applicant to be qualified he must have served atleast 90 days during military conflict and have been Private mortgage insurance - insurance for conventional loans Mortgage insurance protection - for FHA and VA loans Respa - requires lenders to provide good faith estimates of closing costs no later than three days following the date of mortgage loan payment Binder deposit - credit buyer expenses - either debit to seller or buyer depending on who owes money Abstract continuation - is a history of the title to a property. Must be updated to assure that the property has a marketable title. Title insurance - Is not prorated Liquidation value - the amount that remains after all assets if a business have been sold in a hurried, but not forced, sale and all liabilities have been paid. Principle of substitution - No one would pay more for a property than the amount necessary to acquire an acceptable substitute Cost depreciation approach - used to estimate the cost to reproduce or replace a building, minus the estimate for depreciation, plus the value of the land Over improvement - an investment that does not make the best use of a property or is excessive in comparison to other properties External obsolescence - Dirty home or bad neighbor can be an example of an Effective age - the percentage of the total life lost or used up of a building Potential gross income - the total annual income for the coming year Fixed expenses - Does not change with occupancy levels. Examples of fixed expenses are property taxes and hazard insurance. Variable expenses - change with occupancy levels. Examples of variable expenses are maintanance, utilities, trash removal, janitorial expenses, and management fees. Operating expenses - do not include mortgage payments, tax depreciation, capital improvements, personal expenses unrelated to operation of the property, and income taxes. one mill - expressed as the decimal number .001, the equivalent of 1/1,000 of a dollar assessed value - The estimate of value that is determined by the county property tax appraiser is called the step 1 - Protest the tax assessment by requesting an informal conference with the county appraiser. This conference can be conducted at any time throughout the year, but is usually not very effective until the assessment for the current tax period is known. What step in the process is this? Homestead tax exemption - All qualifying owners can deduct up to 25,000 from the assessed value of the property 500 - Tax exempt amount for blind and/or widows or widowers 5,000 - Tax exemption for veterans of military service with atleast 10% military disability Real estate property tax decuction - deductible as an expense when calculating federal income taxes for all homeowners who file itemized returns Mortgage interest deduction - Taxpayers can deduct this for acquiring, constructing, or substantially improving a principal or secondary residence up to 1,000,000 of acquisition indebtedness Residential zoning - Based on density, density limits the number of dwelling units that are allowed per acre Building codes - while zoning laws dictate how a bulding may be used, these establish the minimum standards for design and structure Involuntary inactive - Max 2 years Group - Multiple licenses Single agent - Representing buyers or sellers Transaction broker - Representing buyers and sellers Special - Single act Fiduciary - Confidentiality, obedience, loyalty, and full disclosure are duties of what type of relationship Sue seller - Broker not paid by seller Brokerage office - Enclosed and stationary Broker - End of third business day Escrow dispute - 15 days to notify FREC for Culpable negligence - Excessively negligent Brokerage partnership - Atleast one active broker providing RE services Joint venture - Not required to register eith DBPR Limited partnership - Whoch of the following may register with the Dept to perform brokerage services First degree misdemeanor - 1000 fine Legally sufficient - Complaint filed with DBPR Civil rights act of 1968 - Steering, blockbusting, redlining ADA - Requires all physical barriers be removed for disables individuals Advance rents - May use thenfunds by paying 5% interest on surety bond Riparian rights - Rights of owners whose property borders a river or stream One owner - An estate in severalty only has Tenancy in common - NO SURVIVORSHIP Nonfreehold estate - Tenancy for will/ tenancy for years Lien - Homestead is exemptfrom forclusure due to personal debt or Eminent domain - The right for government to take private land for public use Adverse possession - True owner fails to maintain possession and property is taken by another Escheat - Owner dies withouth a will and with no heirs -owner sleeps on their rights Involuntary alienation - Eminent domain, adverse possession, escheat Quitclaim deed - What deed is best from the seller or grantors position Premises section - Names the parties, contains date states consideration Estate or tenancy - Another's name for rights 640 - How many acres does a township have Lot and block - Subdivision is divided into blocks and lots or Section - 1 square mile or 640 acres Essentials of a contract - Legality of object, consideration acceptance and communication to all parties Suit for cancellation - Wronged party may sue for cancellation Unilateral - An option contract is Promissory note - The evidence of a debt Equity of redemption - Pay back mortgage, pay interest and accrued costs, can redeem up until moment of foreclosure RESPA - Real estate settlement with procedures act is also known as VA loan - A gauranteed loan for honorably discharged veterans Functional obsolescence - An over improved home is an example of Three - How many places to the left is a decimal moved for one mill 60 days - If you change residency you must notify the commission within Misrepresentation - Says house is bigger than it is is an example of Net lease - Tenant pays fixed amount, landlord takes care of all property related expenses Superior liens - Real estate property taxes, special assessment lien and federal estate tax liens are FL's base homestead exemption - $25,000 What determines if the payment will go up or down on an adjustable rate mortgage - Index and margin FL's max homestead exemption - $50,000 Physical characteristics of real estate maybe described as - Indestructible, unique, and immobile Which phrase below describes the meaning of the word contract expressed in simple terms? - A promise to do or not to fo something Which of the following are necessary to create an agency relationship? - A client, an agent, and a represenation to a third party Why does a real estate agent need a license? - He has expertise information on real estate that the average layperson does not have. Loan originator - Seller who finances more then one home in a two year period. Which is the most important issue for a broker acting as a property manager to accomplish? - To get the maximum income while preserving the value of investment Services that a property manager must perform for the owner are listed in: - A property management agreement Putting together two or more parcels of land to make a large piece is called: - An assemblage Which would not usually be involved in financing real estate? - A real estate broker Local communities regulate real estate by: - Creating zone laws It is unethical for an appraiser to accept compensation for performing an assignment when it is contingent on: - The reporting of a predetermined result Which is not commonly an area of federal government interference in real property? - Zoning laws The practice of a real estate sales associate specializing in a certain geographic area is called... - Farming A home that is specially built for a buyer, using his/her blueprints is called... - A custom home The duties of a property manager include all except... - Selling the property Which statement is TRUE - The real estate industry makes up approx 25% of tje nations economy In FL there is a demand for property management services due to... - Absentee owners The Florida Real Estate Appraisal aboard (FREAB) is headquartered in Orlando and consists of how many members? - 9 Agriculture property in FL is property that has more then how many acres? - 10 When is a candidate given the results of his or her licensing exam? - Immediately Which is true when a broker refers a client to another broker in another state? - Real estate brokers shoukd make a written agreement when expecting to cooperate in a sale. Joe is an appraisal graduate student at a state university. He is sent to appraise Farmer Toms property. Because it is such a good property, Joe asks Tom to list the property for sale. Does Joe need a real estate license? - Yes bevause he wants to list the property, not just appraise it. All are FL residents except - A petson living in a condo during the winter season for two months. A motel desk clerk gives the names of persons looking to purchase a home to a broker in exchange for a small fee. Which BEST describes the situation? - He would need a license since he is accepting compensation from a broker. When must the sales associate's post license be completed? - Before the first license renewal A resort manager leases condominiums to out of town guests for several months at a time. The resort is licensed under 509FS. He advertised the condos in a magazine with national exposure. Does this manager need a FL real estate license? - No. The manager is an employee of resort 509FS Which does not appear on a real estate license? - The name of the chair person of the FREC Jim is a convicted felon. He was found guilty of cheating on his income tax for four years and he served time in jail. He has completed his sentence and wants to become a real estate sales associate. Which is most nearly correct? - Jim must disclose his conciction on his real estate application. For her first renewal, Broker Marie mistakenly took 14 hours of continuing education instead of the broker post license course. Can Marie work? - No jer license is null and void. A $1.5 billion agency regulating one million professionals and businesses across some 200 licensee categories in Florida is - The FL department of Business & Professional regulation How many hours is a broker's pre-license course? - 72 A person owns her Ian company, specializing in negotiating sales of property for buyers and sellers. She does not take listings or show property. Does she need a real estate license to do this? - She needs a livense bevause she nehotiates prices between buyers and sellers. A license applicant who had committed a crime of moral turpitude will: - Probably nof be granted a real estate license. Which act or crime could disqualify an individual from becoming a licensee? - Moral turpitude Pearson Vue is - A FL testing institute for real estate A rural electric company has a paid employee who is charged with the responsibility of finding new land to put electric poles on. He buys and sells property and negotiates for the electric company. Does he need a license? - No because he is the employee of the electric company The three categories of real estate licenses are: - Sales associate, broker associate, broker Katherine loves to show and sell houses for others for compensation. She has been doing so for 2 years and without a license. She has been caught and she wants to obtain a license. What is likely to happen? - The FREC may deny her license because sje was holding herself out to be a licensee by prectiving real estate in the previous year. Janice did not answer truthfully on the background page of her application for licensure. When the department found the discrepancy, she was asked about it and she did not tell the truth again. What will likely happen to her application? - The application maybe denied and she maybe subsequent to discinplinary action. Which activity would require a real estate license? - An attorney managing a real estate office. Caveat Emptor - Let the buyer be aware Jane is a college graduate with a four year degree in real estate. She has a sales associate's license and seeks to renew the license for the second time. What must she do? - Take 14 hours of CE, fill out the form, pay the fee and return it before the expiration date. How many members of the FREC must be licensed brokers? - 4 What is the purpose of the Department of Business and Professional Regulation? - Consumer Protection FREC members are paid... - Per diem fee and mileage Joe submitted his application to take the sales associate's examination. He passed the test. When is his license effective? - After he recirved written notice that he passed An initial license is issued in October of 2015. When must the license be renewed in order to prevent expiration? - Sept 2017 Who elects the chairperson of the FREC? - FREC members The FREC May fine up to for any violation of 475 FS and 455 FS - $5k The Department of Business and Professional Regulation has areas of enforcement. - 3 A sales associate failed to complete her CE and renew her license on Sept 30th. What will be the status of the license on Oct 1st? - Involuntarily Inactive Membership on the FREC is obtained by - appointed by the governor, subject to confirmation by the senate. The division that has the power and duty to enforce and ensure compliance with the provisions of the condo act, cooperative act, the Florida mobile home act, the Florida vacation plan and timesharing act, the yacht and ship brokers act, the Florida uniform land sales practices law and provides a mediation and arbitration program for homeowners association is... - The division of FL land sales, condominiums and mobile homes. Who issues real estate licenses? - The department The FREC has the obligation to perform all EXCEPT - Issue a FL real estate sales assoc license The person who is empowered to act on behalf of another is called - An agent The mere payment or promise to pay compensation to a licensee does not determine whether an agency or transactional brokerage relationship exist. An agency relationship is created... - When the seller asks to be represented and the broker agrees. A sales associate is working with a buyer in a fiduciary capacity. With regard to disclosure, which form must be given by the broker to the buyer to clarify the role of the buyer and licensee? - The single agent notice A listing sales associate who shows a property to a ready, willing and able buyer has certain obligations to the buyer. Which is NOT true? - The sales associate MUST disclose to the buyer that he is a transaction broker. Laws governing agency laws are called what? - Law of agency Which agent usually has the power of attorney? - The universal agent A broker represents a seller as a single agent on the sale of his property. A buyer comes to the house and wants the broker to sell her the house and represent her in the transaction. The broker agrees without any further notice to the seller. This is a case of: - Undisclosed dual agency and is illegal in FL All are residential property as defined by FL law EXCEPT: - a 5 unit apartment house Which agency is NOT allowed under FL law? - Dual agency A sub agency relationship would most likely occur in which of these situations? - A salesperson is working for a broker who is the single agent of the seller or the buyer. A broker took earnest money from a buyer. He deposited the money in the trust account, but when his electric bill was due, the broker deposited the buyers money into the brokers business account. What is this action called? - Conversion Three brokers get together and decide to form a corporation to sell real estate. They want to call their company "House of Brokers." Each broker wishes to maintain contact with the public. What is necessary to do this? - All 3 must be active brokers, the cooperation must be registered and the trade name must be registered. Broker Sally wants to work out of a trailer at a new home site. She will negotiate deals here and do closings. What is true about this situation? - Because Sally conducts negotiationd and closings here this would be considered a branch office and must be registered with the FREC. John, the actively licensed broker in a partnership has died. The sales associate working for that partnership... - Will become INVOLUNTARILY INACTIVE A broker desires to keep an escrow account in an interest bearing account. Would this be legal? - Yes. If all parties in the transaction agree in writing that the funds will go into an intrest bearing account and who is the recieve interest. The principal statute(s) affecting the investigative and litigation of the Antitrust Division is/are the: - Sherman and Clayton Acts The federal government department which regulates RESPA is the: - Consumer of Financial Protection Bureau (CFPB) Mixing business and personal money is called: - Commingling Broker Paul from ABC Realty and Broker Shawn from XYZ Realty meet to play golf at the country club. During their round of golf and at lunch both discuss how the cost of business continues to rise. They agree that they should each increase their commission rates. This discussion is: - A violation of the Sherman Anti Trust Act If the rental info provided by the broker or sales associate, for a fee, to a prospective tenant is not current or accurate in any material respect the full fee shall be repaid to the prospective tenant upon demand. A demand from the prospective tenant for the return of the fee, or any part thereof, shall be made within days following the day on which the real estate broker or sales associate had contracted to perform services to the prospective tenant: - 30 Which is not required on a brokers entrance sign? - The name of the sales associate registered with the firm Which CANNOT register with the department to perform real estate services to the public? - A corporation sole provides independent administrative law judges to conduct hearings pursuant to Florida statutes, pursuant to other law, and under contract with governmental entities. - The Division of Admin Hearings (DOAH) How long does a sales associate have to deliver earnest money to the broker? - Immediately What must a broker do with his trust account? - Reconcile monthly with a statement of any discrepencies The licensee charged in a DBPR complaint is made public when? - 10 days after probable cause is found to exist. What FL agency is responsible for investigating real estate complaints? - DBPR The administers and enforces the real estate license law, Chapter 475 Part 1 Florida statutes - FREC If Joe violated a rule under chapter 475 FS and this is his first offense, what is the period of time of probation he could receive, unless otherwise stated by the commission? - 90 days A licensee is surf for damages and payment is made from the real estate recovery fund. The licensee in this case: - Is suspended from real estste practice until he reimburses the fund in full. Suspension of a license can last up to: - 10 years A licensee has been issued a final order of the FREC, suspending his license. How long a time period is the maximum a suspension can last? - 10 years Why is a summary suspension order given? - Because the department feels that there is an immediatr danger to public health, safety snd welfare The department receives an unsigned complaint. What can the department do? - Investigate the complaint if the department wishes When a licensee is being served with the final order of the FREC, how many days does he have to file an appeal with the district court? - 30 days The administrative law judge has issued a recommendation order. How many days will a party to the hearing have to file an exception to the recommended order? - 15 days The probable cause panel... - Holds an investigation, and, if probable cause is found to exist, will direct the department to file a formal complaint against the subject of the investigation The Real Estate Recovery fund is financed through money received from administrative fines and surcharges on New and renewing licenses. What is the dollar amount accumulated in the fund where surcharges are no longer levied on licenses? - $1,000,000 When a licensee is being served with the final order of the FREC how many days does he have to file an appeal with the district court? - 30 days The administrative law judge had issued a recommended order. How many days will a party to the hearing have to file an exception? - 15 days A savings loan would be violating the Federal Fair Housing Act by denying a loan to Mr and Mrs Happy Buyer because - They want to live in an area that is considered by the bank to be declining. The is a federal civil rights law designed to prevent discrimination and enable individuals with disabilities to participate fully in all aspects of society. - ADA The purpose of the interstate land sales disclosure act is to: - Provide consumer protection A garden style apartment building was completed in 1992. It had two stories, but does not have an elevator. According to the Americans with Disabilities Act (ADA) which area must meet specifications for handicap accessibility? - The Federal Fair Housing Act provides that a prima facile case against a broker for discrimination has been established after a complaint has been received because the broker has failed to: - Display a HUD Equal Opportunity poster A buyer requests to be shown homes only in an Asian area of town. In this case the sales associate should: - Provide the buyer with listings that meet the buyers The purpose of the is to give statutory recognition to the criteria and price in all parts of town, then let thr buyer decide which homes he wants to be shown. An aggrieved party with a fair housing violation has how long to file a complaint with the department of housing and urban development? - 1 year The Civil Rights Act of 1866 prohibits discrimination in real estate transactions based on a consumers - Race The illegal practice of directing minorities to areas of the city which are populated by the same race or religion is called: - Steering Under the Federal Fair Housing Act of 1988, which qualifies as a protected class under the definition of familial status? - A family with children 18 and younger All fall under the description of "handicapped" under the Fair Housing Laws EXCEPT - A person in a wherlchair because of a broken leg. The purpose and intent of is to incorporate into the law of this state the accessibility requirements of the Americans with Disabilities Act of 1990, and to obtain and maintain United States Department of Justice certification of the Florida Accessibility Code for Building Construction as equivalent to federal standards for accessibility of buildings, structure and facilities: - The FL Americans with Disabilities Accessibility Implementation Act Which would be exempt under the Federal Fair Housing Acts of 1968 - An individual selling a personal residence who does not use a broker or discriminatory advertising Under the Federal Fair Housing Act, is NOT a protected class. - Age cooperative form of ownership of real property. It shall not be construed as repealing or amending any law now in effect, except any law in conflict herewith, and any such conflicting laws shall be affected only in so far as the apply to cooperatives. - The FL Cooperative Act The term real estate includes all EXCEPT - Personal property 3 of the purposes of the are to: 1) Give statutory recognition to real property timeshare plans and personal property timeshare plans in this state 2) Establish procedures for the creation, sale, exchange, promotion and operation of timeshare plans 3) Provide full and fair disclosure to the purchasers and prospective purchasers of timeshare plans. - Florida Vacation & Timesharing Act Which would NOT be an appurtenance? - A potted plant What is the highest and best ownership? - Fee Simple The HomeOwners Association disclosure summary language should be: - Contained in the purchase of sale agreement in conspicuous type Joint Tenancy needs how many unities to be created: - 4 Tom and Elaine are married. They purchased a house together as a tenancy by the entireties. Will they still own the house together if they get a divorce? - Yes but they will own the house as tenants in common. Real property can be converted into personal property by: - Severance Community Development Districts are often with mixed uses. - Planned Unit Developments (PUD) The right of an owner to own to the average high water mark is - Littoral The purpose of the is to give statutory recognition to the condominium form of ownership of real property and to establish procedures for the creation, sale and operation of condominiums - The FL Condominum Act Extreme wind and 15 ft waves washed away half of the water frontage of Johns bay front property. This violent tearing away of the soil is known as - Avulsion Trees and perennial bushes are considered to be: - Fructus Naturales If the disclosure summary for a homeowners association is not provided to the buyer prior to signing the contract for sale, the status of the contract is: - Voidable at the buyers option prior to closing The ownership presumed by law unless otherwise stated is which of these forms? - Tenancy in common A property owner owns a condo. Her interest in the common grounds around her unit are owned by her in what manner? - Tenants in common Joan and Susie were co-owners in a property. They took title at the same time, had equal interest, had the same deed, and had an undivided interest. Joan dies. What will happen to the property now? - The property is owned by Susie in severalty. A river has deposited soil that had been carried downstream. The buildup soil on the bank is called - Accretion The right of an owner to mine or dig on his property is called what? - Subsurface rights Which best describes a fixture? - Was at one time movable Which is NOT a test for determine if something is a fixture? - A situs Joe rents a building where he has an ice cream store. He wants to put in an ice cream freezer that will hold 28 varieties of ice cream. He will need to affix the freezer in order to obtain water and electricity to power the freezer. Can he do this? - Yes. He is a commercial tensnt and this is a trade fixture. The bundle of rights does NOT include - The right to abandon How many days does a buyer have to cancel a purchase contract of a cooperative when purchasing from a seller who is NOT a developer? - 3 The system of ownership of real property in the US is - Allodial Which is a voluntary lien against a persons property? - A mortgage lien A mechanics lien is a lien - Statutory What would terminate an easement - merger of the two properties Title to real property passes to the grantee at the time of the completed deed is: - Delivered and accepted In a deed, the words which clarify the purpose of the deed with the phrase "to have and to hold" is called a - Habendum clause An improvement which crosses over the adjacent property without the permission of the owner is: - An encroachment The type of deed that transfers the greatest protection for the buyer is - General warrantee deed There was a judgement lien against a person for his debts. He owned a car, boat, farm house, and some land. On which would the judgement lien be placed? - The boat, the car, the farmhouse and the land. The mortgagee's title policy protects - The lender The primary purpose of a listing agreement is to - Serve as a contract of employment between a seller and a broker. An exclusive right to sell has been signed. What BEST describes the type and status of this contract? - Bilateral exceutory An unscrupulous investor completes a contract with a buyer to sell a property the investor does not own. What is true about the sale contract for this transaction? - It is void What is an important legal feature of a contract - It represents a "meeting of the minds" In order to be in compliance with the statute of frauds, a sales contract must be: - In writing "procuring cause" - The party who put the sale into effect A listing agreement could be terminated by all of the following situations EXCEPT - The owners cancel the listing in order to contract with the buyer and sell directly When is a contract terminated - After it is performed If an offer to purchase real property has been presented to a seller, but not accepted, the offer... - Maybe withdrawn by the buyer at any time Which would be the best description of "culpable negligence" - When the sales assiciate knew or should have known of the defect The failure to perform provisions of a contract without a legal excuse is known as - A breach A listing which allows the owner to sell the property himself without being liable for a commission, but which appoints only one broker to act as his sole agent is a (an) - Exclusive agency An arrangement in which brokers pool their listings and all commissions are divided between the listing broker and the selling broker is - A multiple listing "Safe Harbor" describes a situation where - A policy manual within the brokerage is directing wctions of the sales associate The parties created a contract by stating terms for compliance. This is BEST described as - Expressed Which of the following disclosures are not required in a sales contract - Utility costs If an offer to purchase real property has been presented to a seller but NOT accepted then the offer.. - Maybe withdrawn by the buyer at any time When is a purchaser said to have "equitable title" - Between the time of delivery and acceptance (notification) of the contract and actual closing. In order to be in compliance with the statute of Frauds a sales contract must be: - In writing There was an oral agreement for the sale of real estate. This contract would be: - Valid but unenforceable because of the statute of frauds. An exclusive right to sell has been signed. What BEST describes the type and status of this contract - Bilateral Executory A listing which allows the owner to sell the property himself without being liable for a commission but which appoints only one broker to act as his sole agent is an: - Exclusive agency An instrument that evidences one person owing another money is: - A note A clause in a mortgage releasing the indebtedness once the loan is paid off is: - Defeasance Ronald defaulted on his home mortgage payments. The lender obtained a court order to foreclose on the property. At the foreclosure sale, Ronald's house sold for $29,000 and the unpaid balance of his loan is $40,000. What must the lender do to recover the $11,000 Ronald still owes? - Seek a deficiency judgement In an installment land contract, what type of title did the seller retain until the loan was paid? - Legal Foreclosure would terminate - Equitable right depemption A mortgage which is subordinate to another mortgage is called a: - Junior mortgage Which form of financing would be the greatest risk to the buyer? - Installment land contract mortgage If the amount realized at the foreclosure sale is more then the indebtedness, the excess belongs to: - The mortgagor When the buyer's mortgage is more then the market value of a home and the buyer MUST sell the home, a/an might be negotiated with the bank. - Short sale Which BEST describes an owner's equity in the property - The value over and above outstanding mortgage balance A promissory note would usually contain each EXCEPT - physical description of the collateral The basic difference between an FHA and a VA loan is: - FHA insures, VA gurantees ensures that all consumers are given an equal chance to obtain credit. This doesn't mean all consumers who apply for credit get it. Factors such as income, expenses, debt, and credit history are considerations for credit worthiness. - Equal Credit Opportunity Act (ECOA) was created to stabilize the nations mortgage markets and expand opportunities for home ownership and affordable rental housing. - The Department of Urban Housing and Development (HUD) A lender generally charges discount points on a FHA loan to: - Provide greater interest yield to the investor Which agency administers RESPA - Customer Financial Protection Bureau (CFPB) Which law requires lenders to disclose to buyers the true cost of obtaining credit so that the borrower can compare the costs of various lenders - TIL The amount of a loan expressed as a % of the value of the real estate offered as security is the - Loan to value ratio Which is NOT an agency that deals (buys loans) in the secondary market - Federal Housing Administration The VA benefit from the Department of Veteran Affairs for a veteran approved home loan guarantees that - The loan, or portion of it, made by an approval lemding institution will be paid. A final payment of a mortgage loan that is considerably larger then the other monthly payments because the loan was not fully amortized describes an a - Balloon payment In making a home mortgage loan a lender would consider all EXCEPT - Financial need of the borrower Buyer Carr went to get an FHA loan because rates were significantly below the current market rate for conventional loans. The loan requires 3 discount points because it is below market rates. Which BEST describes this situation? - Points can be charged ti either the buyer or the seller